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COTY Investor Alert: Coty Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Misled Institutional Holders: Levi & Korsinsky

Notice to Pension Funds, Asset Managers, and Fiduciaries

NEW YORK--(BUSINESS WIRE)--Institutional investors holding positions in Coty Inc. (NYSE: COTY) during the period November 5, 2025 through February 4, 2026 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Coty shares fell from $3.43 to $2.66 per share, a cumulative decline of approximately 22%, after the Company withdrew its fiscal year 2026 EBITDA guidance and disclosed deteriorating performance across both business segments. To be considered for lead plaintiff, investors must file by May 22, 2026.

Fiduciary Obligations and Recovery Options

Pension funds, mutual funds, and asset managers with fiduciary duties to beneficiaries should assess whether participation in this action is warranted. The securities class action alleges Coty and certain officers made materially misleading statements about the Company's growth trajectory and profitability outlook, causing shares to trade at artificially inflated prices throughout the Class Period.

Key considerations for institutional fiduciaries include:

  • Portfolio Impact: Coty's $0.77 per-share decline represents a significant loss for funds that accumulated positions based on management's repeated assurances of a return to sales and profit growth in the second half of fiscal year 2026
  • Lead Plaintiff Advantage: Institutional investors with the largest financial interest typically receive appointment as lead plaintiff, granting the ability to select counsel and oversee litigation strategy
  • No Out-of-Pocket Cost: Lead plaintiffs and class members bear no fees unless a recovery is obtained on behalf of the class
  • Fiduciary Duty Alignment: Evaluating participation in securities class actions is consistent with the duty of prudence owed to fund beneficiaries
  • ERISA Considerations: Plan fiduciaries holding COTY stock in retirement accounts should review whether the plan suffered losses during the Class Period and whether recovery efforts are appropriate

"Institutional investors play a critical role in securities class actions by ensuring that the class is represented by sophisticated parties with meaningful financial stakes and the resources to oversee complex litigation," stated Joseph E. Levi, Esq.

Contact us for institutional recovery options or call Joseph E. Levi, Esq. at (212) 363-7500.

Case Summary

The lawsuit contends that between November 5, 2025 and February 4, 2026, Coty's leadership projected confidence in returning to growth and targeting approximately $1 billion in adjusted EBITDA for fiscal year 2026. On February 4 and 5, 2026, the Company disclosed that performance had fallen well short of those projections, withdrew full-year guidance, and estimated Q3 adjusted EBITDA of only $100 million to $110 million, a figure that underscored the severity of the shortfall. Adjusted EBITDA for the six months ended December 31, 2025 declined 17% year-over-year to $626.3 million.

INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Contacts

Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

Levi & Korsinsky, LLP

NASDAQ:COTY

Release Versions

Contacts

Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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